Hi can someone help me this question? I just wanna know if laser company common stock is using book value or fair value for calculation? since in loss of impairment of 400,000, it is using 1,500,000 as part of the calculation and was wondering if that 1,500,000 from calculation was a book value or fair value? I'm confused here because in this case, they are the same values. Similarly, is the value of 800,000 from foursquare company taken from the fair value or book value?

I guessed the confusion here is that book value is equal to value, so I don't know which of the two are used for the calculations? please help and thanks in advance!

(LO 4) Elaina Company has investments in Laser common stock and Four Square Company debt securities. Elaina's debt investment is considered held-to-maturity (HTM). For each investment, the carrying value and the fair value are the same at December 31, 2017. At December 31, 2018, the shares in Laser Company are valued at $1,100,000; the debt investment securities of FourSquare are valued at $2,500,000. On 12/31/2019, the fair value of the Laser shares has increased to $1,400,000 and the fair value of its debt investment has increased to $2,950,000. This is shown in the table that follows. [Note: Elaina's stock investment does not result in significant influence on the operations of Laser Company. Thus, equity method accounting does NOT apply.) Investment: Laser Company common stock Investment: Four Square Company debt (HTM) Book Value Fair Value FairValue FairValue 12/31/2017 12/31/2017 12/31/2018 12/31/2019 $1,500,000 $1,500,000 1,100,000 1,400,000 $3,300,000 $3,300,000 2,500,000 2,950,000 (a) Prepare the journal entries to record the impairment of these two securities at December 31, 2018. 31-Dec-18 Loss on Impairment ($1,500,000 - $1,100.000) Equity Investment 400,000 400,000 Loss on Impairment ($3,300,000 - $2,500,000) 800,000 Debt Investments 800,000 TES)